1.1Senator Rarick moved to amend
H.F. No. 2442, the unofficial engrossment, as
1.2follows (...):
1.3Page 12, after line 22, insert:
1.4 "Sec. 5. Minnesota Statutes 2024, section 216B.164, subdivision 2a, is amended to read:
1.5 Subd. 2a.
Definitions. (a) For the purposes of this section, the following terms have the
1.6meanings given them.
1.7(b) "Aggregated meter" means a meter located on the premises of a customer's owned
1.8or leased property that is contiguous with property containing the customer's designated
1.9meter.
1.10(c) "Capacity" means the number of megawatts alternating current
(AC) at the point of
1.11interconnection between a distributed generation facility and a utility's electric
system that
1.12a qualifying facility is capable of producing.
1.13(d) "Cogeneration" means a combined process whereby electrical and useful thermal
1.14energy are produced simultaneously.
1.15(e) "Contiguous property" means property owned or leased by the customer sharing a
1.16common border, without regard to interruptions in contiguity caused by easements,
public
1.17thoroughfares, transportation rights-of-way, or utility rights-of-way.
1.18(f) "Customer" means the person who is named on the utility electric bill for the
premises.
1.19(g) "Designated meter" means a meter that is physically attached to the customer's
facility
1.20that the customer-generator designates as the first meter to which net metered credits
are
1.21to be applied as the primary meter for billing purposes when the customer is serviced
by
1.22more than one meter.
1.23(h) "Distributed generation" means a facility that:
1.24(1) has a capacity of ten megawatts or less;
1.25(2) is interconnected with a utility's distribution system, over which the commission
has
1.26jurisdiction; and
1.27(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel,
and
1.28may include waste heat, cogeneration, or fuel cell technology.
1.29(i) "High-efficiency distributed generation" means a distributed energy facility that
has
1.30a minimum efficiency of 40 percent, as calculated under section
272.0211, subdivision 1.
2.1(j) "Net metered facility" means an electric generation facility constructed for the
purpose
2.2of offsetting energy use through the use of renewable energy or high-efficiency distributed
2.3generation sources.
2.4(k) "Renewable energy" has the meaning given in section
216B.2411, subdivision 2.
2.5(l) "Standby charge" means a charge imposed by an electric utility upon a distributed
2.6generation facility for the recovery of costs for the provision of standby services,
as provided
2.7for in a utility's tariffs approved by the commission, necessary to make electricity
service
2.8available to the distributed generation facility.
2.9 Sec. 6. Minnesota Statutes 2024, section 216B.164, subdivision 3, is amended to read:
2.10 Subd. 3.
Purchases; small facilities. (a) This paragraph applies to cooperative electric
2.11associations and municipal utilities. For a qualifying facility having less than 40-kilowatt
2.12capacity, the customer shall be billed for the net energy supplied by the utility
according to
2.13the applicable rate schedule for sales to that class of customer. A cooperative electric
2.14association or municipal utility may charge an additional fee to recover the fixed
costs not
2.15already paid for by the customer through the customer's existing billing arrangement.
Any
2.16additional charge by the utility must be reasonable and appropriate for that class
of customer
2.17based on the most recent cost of service study. The cost of service study must be
made
2.18available for review by a customer of the utility upon request. In the case of net
input into
2.19the utility system by a qualifying facility having less than 40-kilowatt capacity,
compensation
2.20to the customer shall be at a per kilowatt-hour rate determined under paragraph (c)
, (d), or
2.21(f).
2.22(b) This paragraph applies to public utilities. For a qualifying facility having less
than
2.231,000-kilowatt capacity, the customer shall be billed for the net energy supplied
by the
2.24utility according to the applicable rate schedule for sales to that class of customer.
In the
2.25case of net input into the utility system by a qualifying facility having: (1) more
than
2.2640-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall
be at
2.27a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt
capacity,
2.28compensation to the customer shall be at a per-kilowatt rate determined under paragraph
2.29(c) or (d).
2.30(c) In setting rates, the commission shall consider the fixed distribution costs to
the
2.31utility not otherwise accounted for in the basic monthly charge and shall ensure that
the
2.32costs charged to the qualifying facility are not discriminatory in relation to the
costs charged
2.33to other customers of the utility. The commission shall set the rates for net input
into the
2.34utility system based on avoided costs as defined in the Code of Federal Regulations,
title
3.118, section 292.101, paragraph (b)(6), the factors listed in Code of Federal Regulations,
3.2title 18, section 292.304, and all other relevant factors.
3.3(d) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
3.4having that is interconnected to a public utility and has less than 40-kilowatt capacity may
3.5elect that the compensation for net input by the qualifying facility into the utility
system
3.6shall be is at the average retail utility energy rate. "Average retail utility energy rate" is
3.7defined as the average of the retail energy rates, exclusive of special rates based
on income,
3.8age, or energy conservation, according to the applicable rate schedule of the utility
for sales
3.9to that class of customer.
3.10(e) If the qualifying facility or net metered facility is interconnected with a nongenerating
3.11utility which has a sole source contract with a municipal power agency or a generation
and
3.12transmission utility, the nongenerating utility may elect to treat its purchase of
any net input
3.13under this subdivision as being made on behalf of its supplier and shall be reimbursed
by
3.14its supplier for any additional costs incurred in making the purchase. Qualifying
facilities
3.15or net metered facilities having less than 1,000-kilowatt capacity if interconnected
to a
3.16public utility, or less than 40-kilowatt capacity if interconnected to a cooperative
electric
3.17association or municipal utility may, at the customer's option, elect to be governed
by the
3.18provisions of subdivision 4.
3.19 (f) A customer with a qualifying facility or net metered facility having a capacity
below
3.2040 kilowatts that is interconnected to a cooperative electric association or a municipal
utility
3.21may elect to be compensated for the customer's net input into the utility system in
the form
3.22of a kilowatt-hour credit on the customer's energy bill carried forward and applied
to
3.23subsequent energy bills. Any kilowatt-hour credits carried forward by the customer
cancel
3.24at the end of the calendar year
with no additional compensation.
A customer must be
3.25compensated for a canceled credit at the per kilowatt-hour rate determined under paragraph
3.26(c).
3.27(g) This section applies only to qualifying facilities that begin operation after
June 30,
3.282025. Qualifying facilities that began operation before that date are subject to section
3.29216B.164.
3.30EFFECTIVE DATE.This section is effective July 1, 2025."
3.31Renumber the sections in sequence and correct the internal references
3.32Amend the title accordingly
3.33The motion prevailed. #did not prevail. So the amendment was #not adopted.